May 2022

Russia-Ukraine War Has U.S. Pensions Examining Long-Term Investment Sustainability

Russia´s invasion of Ukraine has caused  U.S. pension plan sponsors to focus on the long-term sustainability of their plan’s investments. U.S. sanctions imposed on Russia have caused U.S.-based pension funds to divest from or suspend allocations to the emerging market’s assets. But this will have narrow impacts to defined benefit plans’ risk and return outlooks, according to pension investment experts. “For most of our clients, their exposure to Russian securities is very small,” says David Eisenberg, outsourced chief investment officer leader at Buck. Many pension plans...

Chile. Pensiones de reparto en Chile: asociación de AFP calcula que ir a ese sistema exigiría cuadruplicar cotización para que fuera sostenible al 2050

Chile. Pensiones de reparto en Chile: asociación de AFP calcula que ir a ese sistema exigiría cuadruplicar cotización para que fuera sostenible al 2050

La semana pasada la comisión de Derechos Fundamentales de la Convención Constitucional votó los temas que rechazó el pleno el 19 de abril, entre los que se encuentran los referidos a la seguridad social. La última propuesta al respecto se votará este miércoles nuevamente en el pleno, donde entre otras cosas se propone entregar prestaciones definidas en materia de pensiones, lo que es interpretado por varios expertos como un sistema de reparto, aunque desde otros sectores señalan que igualmente...

UK. Queen’s Speech measures spark protests

There was no mention of automatic enrolment reform in the Queen’s Speech, but bills around local boycotts, online safety and a revamped audit and reporting framework will all impact the industry, experts have said. Campaigners have promised to take to the streets to protest a bill aimed at tackling local boycott, divestment and sanctions campaigns by public bodies including the Local Government Pension Scheme. Meanwhile, pensions minister Guy Opperman has promised that a consultation into a new value for money framework...

Argentina. ANSES anunció un aumento de 15% para jubilaciones y AUH desde el 1° de junio

Argentina. ANSES anunció un aumento de 15% para jubilaciones y AUH desde el 1° de junio

La ANSES oficializó este martes cuánto subirán las jubilaciones, pensiones y AUH a partir del mes próximo. El haber mínimo será de $37.525. La ANSES anunció este martes que las jubilaciones, pensiones y AUH aumentarán 15% a partir de junio, según la fórmula de ajuste trimestral. El ajuste toma en cuenta la recaudación del organismo, junto con la evolución de los sueldos. Por eso, el ajuste se conoció después de la publicación de la evolución del índice de salarios de marzo...

Zimbabwe: Low Pensions Force Workers to Resist Retirement

Low pensions payouts by both private and public sectors to workers has forced many to shun retirement. Some workers have reportedly gone to the extent of misrepresenting their dates of birth to postpone retirement from the organisations they would have served. What makes it worse is that the ongoing hyperinflation and which is eating into incomes as well as very low remuneration by both private companies and the government. In some instances, workers who have reached pensionable age die at work due...

Large corporate defined benefit plans in Canada are fully funded

Corporate defined benefit plans of public companies in Canada surged to 100% funding with higher discount rates. Asset allocations were little changed. Liability-driven investing continued to be at the forefront with about 50% of assets invested in fixed income. Alternative investments did increase to 7.7%, which was the highest allocation since data have been tracked. The median funded status increased to 100.3% up from 91.5% in 2020. This was the first time the median funding level increased to more than 100%...

US. Companies Race to Offload Pension Risk as Market Volatility Rises

The market for pension risk transfers is booming. In the first quarter of 2022, U.S. pension risk transfers reached $5.5 billion in total market volume, marking its largest quarter to date, according to Legal & General Retirement America’s pension risk transfer monitor. A PRT deal happens when a retirement provider — usually a corporate pension plan sponsor — unloads a portion of (or all) of its liabilities to an insurance company. Beth Ashmore, managing director of retirement at Willis Towers Watson,...

US. The Impact Of Government Retirement Requirements On Small-Business Owners

Retirement funds in America accumulate mainly through employer-sponsored plans including 401(k) accounts. As of 2021, 68% of private industry workers had access to this type of plan. However, while an exact number is not known, in 2017, the U.S. Census Bureau estimated that only 41% of those with access to a 401(k) contributed to it. As a response to this issue, a number of states have passed retirement mandates requiring businesses to offer their employees a retirement savings plan. While...

"Todo el mundo prefiere gastarse la plata hoy y no dejar ahorros clave para la vejez"

“Todo el mundo prefiere gastarse la plata hoy y no dejar ahorros clave para la vejez”

Guillermo Arthur, presidente de la Fiap, dijo que los sistemas de pensiones han aportado hasta 12% al crecimiento del PIB de algunos países Chile y Perú fueron dos países que las últimas semanas tuvieron el tema pensional en la agenda por el hecho de estar en medio de retiros masivos extraordinarios de los fondos privados o AFP. Leer también Congreso de Perú aprueba nuevo retiro anticipado de fondos de pensiones Por eso mismo, Guillermo Arthur, presidente de la Federación Internacional de Administradoras...

Kenya. Reform laws on pensions to spur growth in savings

Whilst the Kenyan pension sector is the biggest in the region, we are yet to exploit its full potential as the penetration rate remains just about 20 per cent of the working class in both formal and informal sectors. Apart from the mention of the registration of The Kenya National Entrepreneurs Savings Trust (KNEST) during the 2022/2023 budget, a government-backed pension scheme for informal workers, there were no other proposals directed towards accelerating the development of the pension sector. There is...